Discussion

Microsoft's answer to the Chromebook.
The real innovation here won't be the product, but the sales process Microsoft will use to force schools to adopt this product rather than face extortive prices on WIndows and Microsoft Office licenses.

@chrismessina what makes you think that k-12 schools are ever exposed to Windows and/or Office licensing fees outside of the baked in cost to the OEM? I don't think that your assumptions are right. Especially since the K-12 strategy is occasionally negative margin or low margin for msft/google and based on a race to the bottom, i.e., just trying to get k-12 student mindshare and to build affinity towards a particular brand/technology choice.

@weiluenhuang well yes, it's also a long play — get kids hooked/familiar with Windows early on, and then they carry those preferences into the rest of their lives.
Microsoft "donates" millions of dollars worth of software via non-profits like Techsoup to schools to kick off this long term effect.
This is the proverbial "gateway drug". It's not a negative margin market if it means that you're getting highly lucrative business down the road.